Thailand’s SET Index is expected to trade sideways this week, as investors are concerned about the Fed’s swifter monetary tightening and escalating geopolitical tensions between Russia and Ukraine, said Country Group Securities (CGS) on Monday.
The broker said that the SET is likely to move between 1,650 and 1,700 points this week (14-18 February), mainly weighed down by external issues, with support at 1,600-1,620 points and resistance at 1,700 points. Recommend investing in 1) oil stocks such as PTTEP, which is benefiting from rising oil prices from escalating Russia-Ukraine tensions, and 2) refinery stocks such as BCP, SPRC, and TOP.
US stock markets fell last Friday on fears of a worsening Russian invasion of Ukraine, as well as inflation and interest rate concerns. On close, the Dow Jones slipped 1.4 percent, while the NASDAQ dropped 2.78 percent.
CGS forecasts that the SET will correct, but that the correction will be short-term because of the support provided by oil stocks (PTTEP), as oil prices remain high amid renewed fears of a Russian invasion that could lead to a shortage of supply. Along with the Thai economy, which is not significantly dependable on the Russian market..
CGS analysts chose PTTEP (Target Price: THB146.00) and TOP (Target Price: THB67.00) as recommended stocks, citing near-term support from higher oil prices.
